Summary of Comprehensive Report on Monitoring Results

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“This publication has been produced with the assistance of the European Union. The contents of this
publication are the sole responsibility of “Armavir Development Center” NGO and can in no way be taken to
reflect the views of the European Union.”

Institute of delegating social services to non-governmental
organizations by the state in Armenia
Preamble
In 2012 the Government adopted "the decision of approving the program about investing integrated
social services (ISS) system in the RA1". ISS service is a complex of functions (actions, steps) carried out by
state, municipal and non-governmental organization aimed at realization of the right to social security of
the person, prevention of difficult circumstances of life, social protection of the individual or family
appeared in a difficult situation and the elimination of the causes of a difficult situation.

2

Its purpose is

delivering social services to citizens in "one-window" principle, increasing its efficiency and creating a
common field for realization of a beneficiary's social needs.
The Law3 about "Social assistance" was passed on December 17, 2014 establishing the format of
multilateral cooperation between public and private sector represented by the the supporting network: "a
joint operation system of state and local authorities, partnership between individuals and legal entities
aimed at protecting the rights and ensuring the legitimate rights and freedom of individuals, certain groups
of peoples and families, which is implemented in accordance with the requirements laid down by the
legislation of the Republic of Armenia (RA) through the provision of social services"4.
The government approved the concept of institutional and legislative reforms of CSO development
in 20145. According to the "CSO Sustainability indicators for Armenia-2014" report published by the US
Agency for International Development (USAID), this concept aims to improve the legal environment for
CSOs. The report says that CSO and state relations have become more institutional and cooperation on
issues of individual policies has been improved.6
At the core of ongoing reforms in the social sphere by the RA Government and MLSA the need
arises to invest "delegated" 7system for social services in NGOs.
Social services delegating system in Armenia still have to pass through institutional development.

1

http://www.arlis.am/DocumentView.aspx?DocID=77514. RA government decision 26.06.2012, 26 N-952-Ն
http://www.mlsa.am/up/ALL%20text%20integrvac.pdf, RA MLSA, Collection of the pilot program for introducing basic
regulations of ISS system, Yerevan, 2013, p. 9
3 http://www.arlis.am/documentview.aspx?docid=94972
4 In the same place, Article 2, Paragraph 15
5 https://www.e-gov.am/u_files/file/decrees/arc_voroshum/2104/09/40-42.pdf, RA Government 2014, September 25, N 40
protocol decision
6 USAID, CDPF, CSO Sustainability Index - Armenia, Yerevan, 2014, page 2
7 We met the term "delegate" only in one line in the study of the social protection budget according to which the Ministry
subsidizes 506,518.0 AMD a number of SSTA for rent and utility costs in the frames of "Funding given to the head of community
by the state for the implementation of delegated powers in the field of social care services operation" programme Meanwhile,
"delegated" concept is not perceived under the money paid to NGOs with SPB, but is comprehended as subsidies allocated for the
provision of other social services.
2

Armenia has a lot of sucess stories about state-CSO cooperations in social sphere, but the legislative
framework remains incomplete in this regard. Mechanisms for financing CSOs by the state are arbitrary
and create unequal competitive conditions in the field.
In the frames of this research we will focus on NGOs receiving subsidy from social protection
budget (SPB), principles of state co-funding (non-competitive - competitive), transparency and
accountability of programmes implemented by state and non-state institutions as well as steps towards
ensuring the latter. NGO sector gets financing from other lines of state budget too, such as health,
education, but in the frames of this research we have mainly targeted social state budget (SSB), which will
later on be the main source of state funding of NGOs for delegating social services.
Methodology
The following sources have been mainly used for collecting and processing information for the given study.


Websites (including official websites of government institutions and CSOs, as well as other
information officially published on the Internet),



Information systems (arlis.am, etc.),



Literature related to the activities of CSOs (databases, reports, studies)



Legal acts (related laws, policies, decrees, orders).
The study's main emphasis was put on the NGOs receiving state co-funding from SPB and providing

social services. Accordingly, there have been examined 13 projects implemented by 11 NGOs.
There has been conducted monitoring of websites of NGOs and social pages to find out how these
sources of information are transparent and accountable from the perspective of presenting and reporting
social programs financed by public funds. The monitoring results included in the table.
Considering the peculiarities of both the subject of study and legal and legislative framework, an
attempt was made to bring together and analyze all the existing information materials, which could be a
background for investing an institute, which will delegate the implementation of social services to NGOs.

Recommendations
1. RA government should implement an accessible and transparent information system of providing
subsidies, grants, donations to NGOs and publishing their audit results.
2. The procedure of obtaining subsidies, grants, donations by NGOs from the state budget should be
made clear and transparent.
3. RA government should legally oblige the NGOs, which receive state funding, to publish annual
reports, including financial (for example, to put on the official azdarar.am website) and make
available to the public.

4. RA government should also oblige all the subsidy providing state authorities to publish report /
information about providing subsidies, grants, donations on their official websites, according to the
programs, the legal entities, which implement them, and the amount, as well as publish the state
funds monitoring and audit results on the official websites or on «azdarar.am».
5. RA government should promote the extension of CSO participation in the programs financed by the
social protection budget.
6. RA MLSA should provide a space to CSOs in the complex integrated social services centers, so that
they can offer alternative social, consulting and other services to RA citizens also within nongovernmental social programs.

Report on the results of social service delivery system
monitoring in Ukraine
Introduction
Monitoring of the social services system in Ukraine is a task of the NGO "Bureau of social and political
development" as part of the project "Advanced Reform, Advanced Civil Society", jointly implemented by
the Armavir Development Centre (Armenia) for NGOs, NGI "Dialogue of Generations" (Georgia) and SCO
"Bureau of social and political development" (Ukraine) with the support of the Secretariat of the Forum
Civil Society Eastern Partnership. The report is based on a review of the legal support of social services
rendering process and also on opinions of experts that are developing the relevant regulations or are
providing social services themselves, as well as on the seminar for NGOs and on focus group for
stakeholders.
Altogether there were interviewed 14 experts: 3 - representatives of the central authorities, 4 - from
international and national organizations, 4 - service providers and 3 - from scientific institutions. The
seminar was attended by representatives of two NGOs, the focus groups – by 12 experts from all the
stakeholders.
The purpose of the survey, workshop and focus group was to find out how the process of social
services reforming in Ukraine is organized and how it relates to decentralization, that is being implemented
in the country, how is the redistribution of functions and powers being made.

Conclusions
Problems
Facility-oriented funding complicates transition to service-oriented funding in the community and
prevents de-institutionalization, which is also opposed by the system: institution personnel and
management at different levels.
There is no basic guaranteed package of social services, which should be funded regardless of the
economic status of a territory.
The issue of decentralization of social services ahs not yet been addressed seriously and is not
detailed in the regulatory framework. The attempts that the MSP has made meet with the resistance from
the Ministry of Regional Development.
The introduction of the social service procurement encounters a lot of barriers at each of its stages.
Specifically, the lack of reliable data on the sizes of different target populations who need social services;
the complexity of the methodology for determining needs for social services (proposed by the Ministry of
Social Policy); the complexity of coating social services to be procured; limited territorial financial

resources, given the priority of facility-oriented instead of service-oriented funding, not services; the lack
of local social service providers; the lack of a system to monitor and evaluate of social service procurement
recipients.
The various elements of the social service delivery system such as social service procurement, setting
priorities to determine the scopes of funding for social services, raising additional funds to provide social
services etc., are not used in the regions as a single mechanism.
Existing regulatory documents are cumbersome and do not meet the needs of the social service reform.
Moreover, due to their complexity they are often not used or misused locally, especially in rural areas. For
example, determination of needs is primarily aimed at ensuring the financial interests of public and
municipal providers. Every social institution “determines needs” of their target populations: children,
families, youth; pensioners, veterans; disabled; other social groups funded only from local budgets. As a
result, local budgeting for social services hardly considers NGO services and funding.

Recommendations
As today Ukraine’s social service system in is disarranged (on the one hand, there is a gap between the
regulatory framework and practice, and on the other hand, a gap between the declared rights to social
services and the lack of financial security) it is necessary to employ a integrated approach to remedy the
situation. Taking into account local changes resulting from the decentralization, the following key
objectives should be addressed:
1) Determine a minimum guaranteed package of services and strictly targeted categories of recipients,
taking into account the financial status of recipients, and including social prevention services, and to
approve a funding mechanism for these services, which would allow to avoid the risk of underfunding.
2) Provide local authorities and specialists with simple tools to plan their social activities and related
expenditures, which would not require regular involvement of individual experts for their interpretation,
as is now the case with the existing methodological base (revision of the list of services to avoid split-level
services, as well as development of planning software).
3) Plan necessary social activities based on existing community problems (such as high levels of child
abandonment, large numbers of poor people, high crime rates, etc.): based on the interaction with the
community leaders, make a list of typical problems; afterwards, involve experts to identify typical causes of
these problems, target populations associated with them, and link requisite services to the community to
mitigate these problems.
4) Introduce a national income level and financial status verification system (understandable to the
public) and an appeals mechanism if a person disagrees with verification findings, conduct a large-scale
information campaign on all aspects of verification and its possible consequences.
5) Ensure the integration of resources, including through the use of the potential of related sectors
(education, health care, administrative services) and raise additional funding (charitable, international,
community).
6) Allocate the authority of each level of government in the provision of social services, including
oversight of social service funding and provision (local governments must understand what in their

communities is funded from the national budget their community, and what they will have to fund from
their local budgets).
7) Introduce electronic management for social service planning and delivery.

In Search of Effective Social Service: Prospects and Challenges
of Decentralization in Post-Communist Georgia
This paper attempts to briefly analyze and assess the system of social service in Georgia and it also seeks for
the advantages and disadvantages of the decentralization of social service. This is a desk research based on
utilization of major texts on social services and general state of the process of political and administrative
decentralization in contemporary Georgia
Introduction: Democratization, Post-Communist Transformation and Local Democracy in Georgia
The collapse of Soviet Union and emergence of new independent states on the territories of former Soviet
Union gave birth to setting up of completely new public institutions and implementation of administrative
reforms in order to achieve social progress and effective functioning of state in the process of
transformation and democratization. Obviously, transition to democracy became extremely difficult task
for new post-soviet states. Vast majority of post-soviet countries could not find relevant cultural
determinants to establish truly democratic order. Due to deep economic crisis and social stagnation
followed by the disintegration of Soviet Union, post-communist states did not enjoy necessary social
requisites to achieve success in the process of democratic transformation.
Obviously, high level of economic development is the most important requisite tp create democratic society
which certainly means that without good life there is no democracy8. Unfortunately, model of transition
chosen by post-communist political elites was not focused on creating relevant social requisites for postcommunist democratic aspirations. Shock therapy became major ideological strata of economic reforms
which undoubtedly ended up with greater social and economic catastrophes reflected with growing trends
of injustice and inequality.
In spring of 2016, Robert Wade of LSE wrote “Georgia was one of the most prosperous states of the Soviet

Union. In just 15 years, to 2005, Georgia plunged from among the most prosperous USSR states to one of
the poorest. Growth did not resume until the mid-2000s. Between the early 1990s and today, Georgia’s
population fell by one third, to about 3.4 million: its diaspora is now mostly in Russia, Turkey and Europe”9
Obviously, disintegration of Soviet Union has resulted with dramatic social consequences. Well-developed
system of social services which Georgia enjoyed during the Soviet Union has dramatically crashed; new
post-communist state emancipated itself from social responsibility and has provoked harsh atomization of
society. Neoliberal policies which dominate Georgia’s post-communist life have empowered the idea of
small government and shadowed the perspectives of social state. Yet, despite of neoliberal strategies of
diminishing or even completely eliminating state intervention in economic life, there are observed various
state and non-state activities in the field of development of social services. The tendency has become
increasingly visible after neoliberal regime change in Georgia (2012) when new ruling political class has
declared the idea of welfare state as central for Georgia’s new agenda of transformation. However, recent
8

See Seymour Martin Lipset, “Some Social Requisites of Democracy: Economic Development and Political Legitimacy,”

The American Political Science Review, Vol. 53, No.1 (1959): 75
9

See Robert Wade, “Georgia: Neoliberalism and Industrial Policy”, Le Monde Diplomatique, May 2016, English edition

advances in the field of social service do not necessarily mean that Georgia moved successfully towards the
idea of welfare state. There is need of transforming whole agenda and organizing strong structural and
social changes for establishment of true welfare state where equality and development will take respected
place in new social order.
Fundamental problem for post-soviet states to organize successful democratic reforms was about lack of
experience of being historically independent and moreover democratic states. To say it precisely, in case of
Georgia the process of democratic transformation became completely painful task as country never ever
experienced what it means to live with democratic manner. Also, due to difficult legacy gained from Soviet
totalitarian systems majority of Georgians since the day of declaration independence until now have rather
authoritarian-minded spirit than democratic one. This is very important to determine, to identify and to
observe the nature of mass beliefs in certain state as mass beliefs have direct impact over democracy or
authoritarianism10. Thus, Georgia, that had extremely difficult political past faced dozens of challenges in
times of post-communist transition as country did not have any empirical experience on how to deal with
independence and with new agenda of democratization.
Development of local democracy and decentralization of the country was always important segment of
Georgia’s aspirations of effective socio-political transformation and democratic transition. Also, to put it in
more general terms, challenges of decentralization and development of local democracy has became
important trouble for many post-communist societies, so that Georgia is not indeed exceptional case. As
scholars argue, decentralization of governance is important component of transformation processes in CEE
and the idea of decentralization is to bring government nearer to the citizens in order to create conditions
for democratization of governance and for increasing its efficiency.
Political elites who rule Georgia in times of post-communist transition frequently expressed sympathies
towards the policies of decentralization. Many projects have been organized to strengthen the process of
decentralization and many state or non-state actors were involved in such projects or initiatives. And still,
Georgia remains the country with the lowest degree of decentralization in almost all dimensions, including
political, administrative and fiscal. Obviously, decentralization of social services is another challenge for so
called new Georgian democracy, and this is especially important when country passionately declares its
gorgeous aspirations for European integration. Surely, effective process of European integration for Georgia
also means effective process of decentralization which is still very weak and specifically in terms of
providing social services. In a nutshell, we may conclude that the problem of decentralization in Georgia is
part of complex of problems and challenges which Georgia faces in times of post-communist
transformation.

Recommendations
As Georgia’s open secret is to support the process of decentralization this also must include decentralization
of particular fields, including social services. Therefore, in the process of decentralization of social services
both state and non-state actors are assigned with important tasks to perform.
Particularly, there are definitely at least four actors which may play crucial role in the process of
decentralization of social service in Georgia. Thus, recommendations are given to following actors:

Government of Georgia:


Must express political willingness to give real chances for administrative and political
decentralization



Must launch fundamental reforms for gradual decentralization of social services



Must crystallize political elites form stereotypes dealing with indifferent attitudes towards the local
authorities in Georgia

Local Authorities:


Must intensify dialogue with government and local community on need of decentralization



Must identify major advantages of decentralized system of delivering social services



Must organize fundamental changes in management of social services, including accurate
observation of local needs

Civil Society Organizations:


Must facilitate better and effective dialogue between central government and local authorities



Must organize educational projects and training programs for local authorities on various aspects of
decentralization of social services



Must observe and monitor general trends of local democracy and decentralization policy

International Organizations:


Must provide support for various activities, initiatives and projects dealing with transformation of
social services in Georgia in the context of decentralization



Together with CSO must facilitate dialogue between central government and local authorities



Must identify best practices from contemporary European democracies in the field of successful
decentralization of social services and to share such practices for local authorities in Georgia.